SAA cash injection imminent but says it needs more  

The government already approved a R5.5bn cash injection for the 2019/20 FY.
South African Airways is buckled under about R12.7bn of debt and is seeking more cash injections to stabilise its finances. Image: Moneyweb

South Africa’s cash-strapped national airline SAA says a government cash injection of R5.5 billion ($376 million) approved for the 2019/20 financial year is expected at the end of the month but it still needs more money, a presentation to lawmakers showed on Wednesday.

South African Airways (SAA) has debt of about R12.7 billion, consisting of R9.2 billion of legacy debt and a R3.5 billion working capital facility provided by banks.

The airline requires R2 billion by December to fund working capital for its 2019/20 financial year, the presentation said.

SAA, the turnaround strategy of which has been stymied by mismanagement and inability to service its debt in an increasingly competitive aviation environment, also received a R5 billion government bailout in its 2018/19 financial year.

The state-owned flag carrier’s long-term strategy is based on an equity injection of nearly R22 billion. The government, meanwhile, wants further cost reductions before committing more money during a time of weak domestic growth and is also considering how it might find a commercial partner for the airline.

In the presentation, SAA said it is in negotiations with lenders to make R2 billion available for working capital, adding that it would have to meet certain conditions to obtain the funding.

“Lenders have the following conditions,” it said. “Repayment of short-term funding of R3.5 billion by September 2019, which is already provided for, and a debt reduction and payment plan for the legacy debt of R9.2 billion.” 


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More payments for looting. Call Comair and ask them to run this rudderless mess of a comapny

The cost of flying the rich around.

You have to admire the persistence with which the ANC displays their utter (try and be nice) with this.

I guess they think SAA make them look smart. These (something colourful) think if they manage to get a loan from someone it is an achievement.

Absolutely no accountability. They are like a spoilt child who gets whatever it wants when it cries. Unfortunately in this case it is the poor taxpayers who are crying. How much more of our hard earned money is going to disappear down the sinkhole of Goverment arrogance and stupidity.

The ANC took over a healthy profitable world respected SOE and turned it into a sh…. African Airline. Well done!
Time to swallow your pride, admit defeat and close down this Tax guzzler – rather put the taxpayers money towards more productive SOE’s ( although the choice is limited!).

SOE’s employing the otherwise unemployable, it is merely an extension of the social grant system.

End of comments.





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